* Dollar down on Fed speculation about interest rates
* Weekly inventory data forecast to show crude draw
* Wall Street flat as Boeing offsets by bargain buys
NEW YORK, June 23 (Reuters) - U.S. crude oil futures
settled higher on Tuesday, recharging as the dollar continued
to weaken and traders geared up for weekly inventory reports
forecast to show a drawdown in domestic crude supplies.
The U.S. dollar, which tends to move in the opposite
direction against oil, fell against the euro on speculation the
U.S. Federal Reserve may lower expectations of an interest rate
rise when it concludes a two-day policy meeting on Wednesday
[USD/]
Petroleum inventory data will begin coming in late Tuesday
afternoon and were forecast to show that crude stocks last week
fell on average by 1.0 million barrels, according to a Reuters
poll of analysts. [EIA/S]
Gasoline and distillate stocks, which include heating oil
and diesel fuel, were forecast to show inventory increases.
The industry group American Petroleum Institute will
release its report at 4:30 p.m. EDT (2030 GMT). The federal
U.S. Energy Information Administration will issue its own
report on Wednesday at 10:30 a.m. EDT (1430 GMT).
PRICES
* On the New York Mercantile Exchange, new front-month
August crude CLQ9 settled up $1.74, or 2.58 percent, at
$69.24 a barrel, trading from $66.37 to $69.68.
* In London, August Brent crude LCOQ9 ended up $1.82, or
2.72 percent, at $68.80 a barrel, trading from $65.90 to
$69.25.
* NYMEX July RBOB RBN9 ended up 3.35 cents, or 1.8
percent, at $1.8932 a gallon, trading from $1.8368 to $1.9132.
* NYMEX July heating oil HON9 settled up 4.15 cents, or
2.4 percent, to $1.7690 a gallon, trading from $1.7072 to
$1.7766.
* The August/August RBOB crack spread <0#RB-CL=R> ended at
$10.17. The August/August heating oil crack spread <0#CL-HO=R>
ended at $6.94.
* The spread between the current front month and the
five-year forward crude contract CLc61 ended at $14.86. The
August 2014 contract settled at $84.10, up $1.04, or 1.25
percent.
TECHNICALS
NYMEX crude 10-day/20-day moving average: $70.38/$68.86
Technical support/resistance:
NYMEX crude: $64.95/$69.40
NYMEX heating oil: $1.6856/$1.7694
NYMEX RBOB: $1.8183/$1.9011
For a report on technicals click [ID:nLN713112]
MARKET NEWS
* U.S. stocks were flat as a delay in Boeing's first test
flight of its 787 Dreamliner was offset by investors searching
for bargains following Wall Street's worst day in two months
and positive reaction to a Treasury auction.[.N]
* Sales of previously owned U.S. homes rose, but at a
slower-than-expected pace in May, an industry survey showed,
pointing to a sluggish economic recovery. [ID:nLN392294]
* OPEC will not cut output at its September meeting,
Kuwait's oil minister said on Tuesday. [ID:nLN892010]
* OPEC Secretary General Abdullah al-Badri said he hoped
OPEC's compliance with oil output targets would rise to more
than 80 percent next month. Compliance is now about 75 percent,
he said, speaking after OPEC-EU talks. [ID:nWLA7204]
* Oil markets may face a supply crunch by 2014 if global
GDP growth hits 5 percent in the coming years, Nobuo Tanaka,
the head of the International Energy Agency, said.
[ID:nN23276772]
* The number of mass layoffs by U.S. employers rose last
month to tie a record set in March, according to government
data that suggested the labor market has yet to stabilize.
[ID:nN2394]
* Chevron (CVX.N) said it had started oil production at the
Frade field off the coast of Brazil, a $3 billion project with
output expected to reach 90,000 barrels per day by 2011.
[ID:nN231202]
(Reporting by Gene Ramos and Robert Gibbons; Editing by
Christian Wiessner)
